Singapore (13 May 2020) – If you’ve been living in Singapore and procrastinating on switching your power supplier, procrastinate no more! Friends and family members, who’ve made the switch earlier, are enjoying real savings that could be put to better use – the purchase of a plane ticket, children’s textbooks or simply our monthly groceries.
Perhaps we can all take some guidance from the wise words of Benjamin Franklin, a leading writer and polymath, who lived in the 18th Century, when he said:
“Beware of little expenses. A small leak will sink a great ship.”
What more with a recession imminent as a consequence of the Covid 19 pandemic, it just wouldn’t make any economic sense to delay it any longer.
Singapore’s Open Electricity Market was rolled out in stages beginning 1 November 2018. The open market simply means residents can now opt to buy electricity from many electricity retailers, while in the past they could only obtain the supply from the SP Group, or Singapore Power.
Under the previous system, residents paid a uniform price – SP’s regulated tariff rate. Today they can now choose between two standard price plans on offer – a Fixed Price Plan or a Discount Off the Regulated Tariff Plan.
Which To Choose?
A Fixed Price Plan means you pay a constant price of electricity throughout your contract period – be it 6, 12 or 24 months – to the retailer of your choice. Different retailers offer different fixed prices, so naturally you would want to go with a retailer that offers the most competitive price. The downside of this plan is SP’s regulated tariff may fall to below a retailer’s fixed price and consumers will end up paying higher than the regulated tariff.
A Discount Off the Regulated Tariff Plan simply means that – the price of your electricity is SP’s regulated tariff minus a fixed percentage discount throughout the contract period. The price of your electricity per kWh (kilowatt hour) will fluctuate on a quarterly basis in tandem with the changes in the regulated tariff rate that in turn, is influenced by the changes in the price of natural gas.
Electricity tariffs go up and down. SP announced on March 31, that its electricity tariff for 1 April to 30 June 2020 will be down by 1.22 cents per kWh to 23.02 cents/kWh (before 7% GST). This is due to lower energy costs incurred in electricity generation.
Given the myriad of plans on offer, it can indeed be overwhelming. But it doesn’t have to be so. We’ll share with you, how you can go about choosing a retailer.
Price Comparison
You’ll certainly need to work out which retailer gives the best savings. So, first do a comparison of the savings we could potentially make based on our March electricity usage of 885 kWh. At SP’s tariff rate of 0.2424/kWh, our electricity bill before the 7% GST was $214.52.
We first went to http://compare.openelectricitymarket.sg. Below is our compilation of the potential savings one could make with the various retailers.
| No. | Supplier | Usage | Rate (cts) | Bill Amount |
| 1 | SP | 885 kWh | 24.24 | $214.52 |
| Retailers (Fixed Plans) | Rate (cts) | Bill Amount | Savings/Mo | Savings/Yr | |
| 1 | PacificLight (12 mos) | 17.29 | $153.02 | $61.50 | $738.00 |
| 2 | Tuas Power Supply (12 mos) | 17.29 | $153.02 | $61.50 | $738.00 |
| 3 | Best Electricity (12 mos) | 17.30 | $153.10 | $61.42 | $737.04 |
| 4 | Best Electricity (6 mos) | 17.30 | $153.10 | $61.42 | $737.04 |
| 5 | Senoko Energy Supply (12 mos) | 17.40 | $153.99 | $60.33 | $726.36 |
| 6 | Union Power Pte Ltd (12 mos) | 17.40 | $153.99 | $60.33 | $726.36 |
| 7 | Seraya Energy (Geneco) | 17.45 | $154.43 | $60.09 | $721.08 |
| 8 | Union Power (6 mos) | 17.45 | $154.43 | $60.09 | $721.08 |
| 9 | Ohm Energy (12 mos) | 17.49 | $154.79 | $59.73 | $716.76 |
| 10 | Seraya Energy (Geneco) (6 mos) | 17.59 | $155.67 | $58.85 | $706.20 |
| 11 | iSwitch (12 mos) | 17.60 | $155.76 | $58.76 | $705.12 |
| 12 | Union Power (24 mos) | 17.60 | $155.76 | $58.76 | $705.12 |
| 13 | PacificLight Energy (12 mos) | 17.66 | $156.29 | $58.23 | $698.76 |
| 14 | Senoko Energy (24 mos) | 17.66 | $156.29 | $58.23 | $698.76 |
| 15 | Tuas Power Supply (24 mos) | 17.66 | $156.29 | $58.23 | $698.76 |
| 16 | Union Power (24 mos/Union Saver 24) | 17.67 | $156.38 | $58.14 | $697.68 |
| 17 | Sunseap Energy (24 mos/SUNSEAP-ONE) | 17.67 | $156.38 | $58.14 | $697.68 |
| 18 | Sembcorp Power (24 mos/$50 rebate) | 17.95 | $158.86 | $55.66 | $667.92 |
| 19 | Sembcorp (12 mos) | 17.95 | $158.86 | $55.66 | $667.92 |
| 20 | Best Electricity (24 mos) | 17.98 | $159.12 | $55.40 | $664.80 |
| 21 | Keppel Electric (12 mos) | 17.98 | $159.12 | $55.40 | $664.80 |
| 22 | Seraya Energy (Geneco) (24 mos) | 17.98 | $159.12 | $55.40 | $664.80 |
| 23 | Tuas Power (12 mos/Bill Rebate) | 17.98 | $159.12 | $55.40 | $664.80 |
| 24 | Ohm Energy (6 mos) | 17.99 | $159.21 | $55.31 | $663.72 |
| 25 | Sunseap Energy (6 mos/1% Solar Energy) | 18.03 | $159.57 | $54.95 | $659.40 |
| Discount Off Regulated Tariff | Discount | Bill Amount | Savings/Mo | Savings/Yr | |
| 1 | Diamond Electric (12 mos) | 25% | $163.48 | $51.14 | $612.48 |
| 2 | PacificLight (12 mos) | 25% | $163.48 | $51.14 | $612.48 |
| 3 | Seraya Energy (Geneco)(24 mos) | 23% | $167.84 | $46.68 | $560.16 |
| 4 | Sunseap Energy (6 mos) | 23% | $167.84 | $46.68 | $560.16 |
| 5 | Sunseap Energy (12 mos) | 23% | $167.84 | $46.68 | $560.16 |
| 6 | Sunseap Energy (24 mos) | 23% | $167.84 | $46.68 | $560.16 |
| 7 | Union Power (24 mos) | 23% | $168.28 | $46.24 | $554.88 |
| 8 | iSwitch (12 mos) | 22.80% | $168.93 | $45.59 | $547.08 |
| 9 | PacificLight Energy (24 mos) | 22.50% | $168.93 | $45.59 | $547.08 |
| 10 | Sembcorp Power (12 mos) | 22.50% | $168.93 | $45.59 | $547.08 |
| 11 | Sembcorp Power (24 mos) | 22.50% | $168.93 | $45.59 | $547.08 |
| 12 | Best Electricity Supply (24 mos) | 22% | $170.02 | $44.50 | $534.00 |
| 13 | Tuas Power Supply (24 mos) | 22% | $172.02 | $42.32 | $507.84 |
| 14 | Best Electricity Supply (12 mos) | 21% | $172.20 | $42.32 | $507.84 |
| 15 | Diamond Electric (6 mos) | 21% | $172.20 | $42.32 | $507.84 |
| 16 | Keppel Electric (24 mos/DOT24) | 21% | $172.20 | $42.32 | $507.84 |
| 17 | Keppel Electric (24 mos/DOT3) | 20% | $174.38 | $40.14 | $481.68 |
| 18 | Senoko Energy Supply (24mos/LifeSave24) | 19% | $176.56 | $37.96 | $455.52 |
| 19 | Senoko Energy Supply (12mos/LifeSave12) | 19% | $176.56 | $37.96 | $455.52 |
| 20 | Tuas Power Supply (6mos/PowerDO 6) | 18% | $178.74 | $35.78 | $429.36 |
| 21 | Best Electricity (24 mos) | 16% | $183.10 | $31.42 | $377.04 |
| 22 | Sunseap Energy (24 mos/50% Solar Energy) | 15% | $185.28 | $29.24 | $350.88 |
| 23 | Sunseap Energy (24 mos/100% Solar) | 10% | $196.18 | $18.34 | $220.08 |
Source: https://compare.openelectricitymarket.sg/#/pricePlans/list. This table was generated on 12th May 2020.
From the list above, PacificLight’s and Tuas Power’s fixed price plans at 17.29 cents per kWh are the most competitive, giving consumers a substantial savings of $61.50/month or $738/year.
| Rate (cts) | Bill Amount | Savings/Mo | Savings/Yr | |
| PacificLight (12 mos) | 17.29 | $153.02 | $61.50 | $738.00 |
| Tuas Power Supply (12mos) | 17.29 | $153.02 | $61.50 | $738.00 |
The most competitive retailers under the Discount Tariff Plan are Diamond Electric and once again, PacificLight.
| Discount | Bill Amount | Savings/Mo | Savings/Yr | |
| Diamond Electric (12 mos) | 25% | $163.48 | $51.04 | $612.48 |
| Pacific Light (12 mos) | 25% | $163.48 | $51.04 | $612.48 |
So now, its down to whether one should go for the Fixed Plan, or Discount to Tariff Plan.
The downside to the Fixed Plan is should Regulated Tariffs go even lower than the current rate during the contract period, one may have to pay a higher price than the Regulated Tariff. Having said that the chance of that happening is slim, looking at the tariff rates over the past since Jul-Sep 2018. According to SP’s data, the market witnessed the lowest tariff of 22.79 cents/kWH in the quarter of Apr-June 2019; the highest was this last quarter Jan-Mar 2020 at 24.24 cents. To make these Fixed Plans unattractive, the tariff will have to fall below 17.29 cents/kWH.
Source: https://www.spgroup.com.sg
As things stand the savings under the Discount Tariff pale in comparison to the Fixed Plan.
But since SP has already announced that the Regulated Tariff rate in the current quarter Apr-June 2020 will be 23.02 cents, this has made Diamond Electric’s and PacificLight’s 25% discount below the Regulated Tariff looks attractive. At 25% discount, price of a kWH will be 17.26 cents/kWH. And there is a good chance that the Regulated Tariff will slide further in coming quarters in view of the depressed global energy prices. -/-www.halaluniverse.net
